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tv   Bloomberg Markets  Bloomberg  June 19, 2015 4:00pm-4:31pm EDT

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so, picking up a little bit of scheme. off,ow is finishing -- this is can blame picking up steam on the downside, like i mentioned. and you had factors weighing on stocks. these was the word the whole day, who want to head into the weekend with massive uncertainty. the reason why you saw financial and energy leading the way down. i need to point out, we are still looking at the best week
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for the s&p 500 and nasdaq since april and the best doubt -- dow since may. we are still up a lot for the month. of for the year on the dow, i want to put that in perspective. we also had good numbers from kb home's, that is worth mentioning. housing is important in the recovery. they are doing better. as you said, huge weekend coming up for greece. onre was not a lot of action the political level, the big news was the ecb giving the some expansion, the emergency liquidity assistance. it has reported that they will revisit the state of liquidity of the greek banks on monday and of course we have the big european leaders summit. alix: emergency summit. >> it was scheduled this week
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was not on the calendar, they will give it another shot. alix: you brought up the emergency liquidity systems. --dman sachs exit at about over $80 billion. we are 10 billion euros away, as they keep reading that raising it, how much longer does actually have before it runs out? emergency phone call today to determine how much more liquidity they can give to greek banks. they do not have to give more. they could say no. but the thinking is the ecb does not want to make the call to pull the plug. they want it to be a political decision. they want merkel and other leaders to make a deal or fail to make a deal. let the political leaders make the decision and they will follow suit.
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talk about the ecb make a distinction on the fall of the on julysus the default 20 for the ecb. there is a big difference. greece has this big payment at the end of the month. they couldn't miss the payment and it would not be the end of the world. , soing a payment to the ecb the euros on it was built on these roles that the ecb cannot give money to governments. ,bviously, it has bought bonds but they were able to take a haircut on the greek problem, that would be a subsidy and a very serious know, no. more joining us to discuss is daniel morris and lisa. happy friday.
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the what do you think about imf and ecb? >> it makes a difference. is it a default given there are no creditors involved? people used that term default the term sleep -- default very loosely. a default in which they have not paid, but not in the sense we think. the imf has a 30 day grace. -- grace period. i think it is the mid july deadline that they need to keep too, because he cannot not pay the ecb and expect to get money back. the markets say, we don't care. we are not watching. i think the big? question mark is, could there be contagion?
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what happens if these banks that borrowed money start to default? alix: if someone in greece five a truck from germany, there is a paper trail. it has to be paid for at some point. 115 billion euros on the hook, honestly, there has been no concern in the debt market, equity market, people are really over it. >> sick of it. up was >> it shows that the markets realized there is too much to lose on both sides and they have to keep in mind, the two things separating them is not that large. it seems significant, but it is played up. we are talking numbers that are breakable. -- reachable.
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alix: talking to lisa point, i was talking about greece and others didn't seem to care. we do not have that on greece, but if something happens to greece and markets don't move, that is a bullish sign. >> right, and that is a way to interpret what has been going on with the market movement or lack there of. people are saying, even if you default, so much has changed since 2012. this has been isolated to the european members, the finance ministers with lots of money, that it will not cause the catastrophic contagion. is that what the market is saying or is the market pulling fooling- fully -- itself? during the debt ceiling as
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there was a lot of nervousness, but then they got the deal and there was a lot of selling off. you never know how this type of thing works. markets can go in a different direction. alix: that is true. stocksot like it is bank increase, this is macro. situation. a >> them not having a position is probably true. who owns the debt, that is another reason why you do not see affect in the market, they are not buying and selling based on the news. >> i was just talking to a money manager who said this is the mostthere is asking is the on thes the most beari market. sh they are buying safer -- they are buying safer assets, making
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sure that you are insulated. have seen some of the biggest outflow from credit funds. alix: $6 billion of outflows in one week. that is all i have to say. sovereign a largely debt fund, particularly european , there is incredible year, you, in the 10 are looking at 25% decline in value in one, or a couple of weeks. this is dramatic. mrs. it once in a lifetime move, said people are watching and they are getting scared. what are the odds that this is supposed to happen. is there a cross correlation, we have not seen that. ,uropean equities for example what do you see is the risk? >> we have seen on the fixed
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income side, out of the ecb, this was a one right that one way that. clearly that was not the case. that explains a lot of the outflow. people realize they will not make as much money as they thought. that is the focus on the fixed income side. on the equity side, we probably will see some more sell off within european equities. we do not expect a deal on monday, but if it does happen it is a buying opportunity. isx: a look ahead at what next week, not just greece on monday the other events. on tuesday we get/pm eyes from fromust -- pmi's not just china, but from the u.s. look at home builder contracts, thursday is the personal income and spending . and the said it will be looking
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at inflation. , back in the day during the crisis we had these weekends and we were thinking, can we get a deal before asian markets open? they never did but it did not matter. but we are getting back to this crucial weekend, will happen before new zealand opens up on sunday afternoon and kind of like, flash back to the good old days. this is like ground zero for what is happening in greece. >> we have talked about economic data coming out next week, and think that we will see more disconnect. the u.s. economy is doing well, and what you will see in the equity market, we have already .ot the benefits we may not see such a positive reaction for u.s. equities with higher interest rates. inflation,ing at
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that will be key. it is all about inflation right now. at the fed says they are interested in employment, but i think that they are looking at inflation right now and i think that every point of data will be a market mover, more than anything. watch for volatility and watch for wage inflation. alix: we are excited. good to see all of you. happy weekend. much more to talk about. china and the possible bubble bursting, coming up next. ♪
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♪ alix: welcome back. they are sentiment is spreading as the shanghai composite index
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goes from the best-performing benchmark following a year-long rally to the worst this week. u.s. investors have never been to convince at the rally in china is ending. morris.h me is daniel you agree, are you a pessimistic? >> when you see that chart, that downturn that we had doesn't seem so surprising. it is hard to come up with a bullish case right now. overvaluation,of be quite healthy if you did see a correction. alix: jpmorgan had a very counterintuitive call today, adrian coming out and saying that the declines are a buying opportunity. policy will step in if the market correction gets beyond a
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comfortable level, if the correction continues next week, you will fear something reassuring, what do you think about that? >> i think that chinese government will be focused on the economy. they want to get in the position of providing their own -- on the market. pmi's,see the pm eyes -- out, it will prompt noises from the chinese government. alix: does that mean that a bad number will be more meaningful for the market? >> more room to run. be, the good news is going to be bad, if that is what we see from the data. alix: if there is a wipeout, that could hurt people, not just the hedge fund managers, but these are day-to-day people investing money, so isn't the government on the hook for them?
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nervous about are that, especially if it starts to sell off. and the impact it could have. certainly that concern, it is a question of you bought the stocks and how they will pay it back, but that should be into the economic demand in the company in terms of services and manufacturing. for thewill be in order government, unless we see it feed into the real economy. , says that aargo macau official says that revenue could drop to $60 billion, the lowest monthly result in over four years. what does that tell you? repercussionseen in terms of luxury demand and gambling demand, that is a change in attitude toward corrections. not surprising. if we look at opportunities in china and focus on domestic consumer demand, as opposed to
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traditional trading infrastructure, commodities, that he used to seeing in china. alix: i was as surprised that her shoes came out and downgraded because china wasn't buying chocolate. >> if you look at china, you have not seen the momentum you would like or expect to see. if manufacturing is weak, people working in a manufacturing are not getting the income. not the momentum we want to see is going to play into consumer demand and the demand of chocolate. having aoking at them longer horizon view, where will we see structural changes in the economy that provides opportunities to get closer to the trade. alix: where will that be and does that mean it is a buying opportunity? >> long-term focus is on domestic demand driven sectors as opposed to trade driven sectors, investment given
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sectors. alix: so u.s. companies that sell goods/ >> i think the way that we need to think about emerging-market investment, that needs to change, we need to look at demand, that middle-class buying and where they are buying from. it could be a developed market company. ,t is looking at what companies who is making the products, and tracing it that way. alix: ipos are actually sucking a lot of money out of 14ditional funds, we have ipos coming out in the u.s., does that money rushing into it, that number of ipos concern you? >> a little bit. if you look at the u.s. market and how it has traded, has been in a trend, trying to break out to new highs. companies see this
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as a good opportunity to issue new stock for companies, it is a modest signal that we could see weakness in the u.s. market. alix: thank you so much for your perspective. -- daniel morris, thank you so much. directors inmen hollywood speak about sexism in the industry. we wonder what they have to say. -- we will hear what they have to say. ♪
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alix: welcome back. we want to get right to top stories. the suspect in fatal shootings at a historical budget in south
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carolina had a bond hearing today. court,roof was not in but he was visible from a computer link. was it there to answer questions. he is charged with nine counts of murder and a weapons charge. some relatives of victims were in court. no bond on the murder charges, bondhere was a $1 billion on the weapons charge. vladimir putin had some choice words for the u.s. today. he was at the st. petersburg international economic forum and covered topics with charlie rose. one area of discussion was russian relations with the u.s. two accused -- vladimir putin accused washington of messing with russian affairs. they are not thinking about how we understand our own interests.
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they are trying to say that they know better what we need. let us decide ourselves what our interest are, what our needs are, these on our history and culture. alix: he also said that his country is weathering the economic crisis they're better than expected. is on his third an embassy to avoid a tradition to sweden -- extradition to sweden. he denied all allegations against him. and a pioneer of cable tv has died. ralph roberts founded the company that became comcast. he did that in 1963 by buying a small cable system in mississippi. it has since grown to become the greatest -- biggest cable
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provider. his son is now chairman and ceo. those are your top stories. of the top grossing 600 films 2007-2013, only a small percentage were directed by women. what is going on? in a special documentary ,remiering tonight at 7:30 p.m. called celluloid ceilings, bloomberg interviewed many female directors, to explore sexism and discrimination may have faced in hollywood and what they are trying to do to change things. ♪ >> i was told that it could not be a direct or because a was a woman -- because i was a woman. i have been directing now for
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many years, but not as frequently as i would have if i had been a man. >> i was going into projects with people who had worked with academy award nominated actors, so i should have been taken seriously, but i was not. it was always a sense of, can you really do this? that a man could do it better. >> people would say, your movie would have gotten a better distribution had you been a man. they have prejudices that week cannot make action movies, even though maybe we grew up doing sports our whole lives. you cannot actually look at a man and say he probably does not know how to cook. and you cannot look at a woman and think that she knows nothing about sports. >> we are not in the 19th century. not every man director is capable of directing every movie, we all have a different
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go set to bring to the job. the job is gender-neutral. >> ask any man with a wonderful career who loves what they do, what would happen if someone told you you could do that -- you could not do that because you have the wrong genitals. it is absurd. alix: looking for to that documentary. and thank you for watching "bloomberg market day", have a wonderful weekend. take care. ♪
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emily: uber is becoming the most popular on wall street. what you need to know about the company's $2 billion credit line. ♪ emily: i'm emily chang and this is bloomberg west. fines andrace for big what is the threat of brothels into licking valley. the company's dramatic new media strategy. startups are racking up record amounts of cash.